Oil stocks in light as crude oil rises, Eni benefits from gas discovery in Indonesia

(Il Sole 24 Ore Radiocor) - On a day when sales prevailed on the stock markets, oil stocks came to the fore - with the sector sub-index among the few to rise -, driven by the rally in crude oil prices. In Milan, in fact, Eni topped the main list, followed by Saipem and Tenaris. Driving the purchases, as mentioned, are oil prices, which have risen again after the US taken control of an Iranian-flagged cargo ship near the Strait of Hormuz. Thus, Brent crude is worth around 95 dollars per barrel and Wti trades at around 88 dollars.

Also influencing Eni's good performance is a new gas discovery made by the Geliga-1 exploration well, drilled in the Ganal block in the Kutei Basin, about 70 km off the coast of East Kalimantan, in the Indonesian offshore. As specified in a company note, preliminary estimates indicate volumes in place of around 140 billion cubic metres of gas (5 Tcf) and 300 million barrels of condensate in the encountered interval. "Analyses are underway to assess accelerated development options, also taking into account the proximity to infrastructure - existing and to be built - offering potential synergies in terms of time-to-market and cost optimisation," Intermonte analysts point out. The new discovery, the experts note, 'is adjacent to the yet-to-be-developed Gula gas discovery (approximately 56 billion cubic metres of gas in place with 75 million barrels of condensate)'. According to initial estimates, 'the combined resources of Geliga and Gula have the potential to produce an additional 28 million cubic metres per day of gas and 80,000 bpd of condensates, opening up, among other things, the possibility of a third production hub in the prolific Kutei Basin on a fast-track basis'.

As for Saipem, the market also rewards the new contract with Eni for the construction of the new biorefinery in Priolo, Sicily. The contract has avalue of around 700 million and is expected to be completed at the end of 2028. The new plant will have a capacity of 500 thousand tonnes/year with ample operational flexibility for the production of Saf-biojet and Hvo-diesel. "The contract reinforces the collaboration started between Eni and Saipem for the development of biorefining in Italia with the agreement signed in 2023 and subsequently extended in 2025," highlight Intermonte analysts. Banca Akros experts are also positive, stressing: "The contract is of significant size and confirms that the development of biorefineries is a positive factor for Saipem".